Table 2.

Current excise system for cigarettes in China

Level	Type of excise	Producer price range	Current excise rates
Producer level	Specific (all classes)	All packs	0.06 RMB/pack
	Ad valorem (class I)	>10 RMB/pack	56%
	Ad valorem (class II)	7–10 RMB/pack	56%
	Ad valorem (class III)	3–7 RMB/pack	36%
	Ad valorem (class IV)	1.65–3 RMB/pack	36%
	Ad valorem (class V)	<1.65 RMB/pack	36%
Wholesale level	Specific (all classes)	All packs	0.10 RMB/pack
	Ad valorem (all classes)	All packs	11%

Notes: (1) ad valorem rates are applied to the respective producer and wholesale price of each brand and (2) one pack contains 20 sticks.